"We believe we made very strong operational and financial progress in 2012. We solidified our pain franchise by growing Gralise prescriptions throughout the year and acquiring and relaunching Zipsor mid-year. Our recurring revenue, consisting of our product sales and royalties, exceeded an annualized run rate of $100 million for the first time in the fourth quarter 2012. We expanded our portfolio of royalty producing agreements with our license to Janssen for Nucynta® ER and filed Serada with the FDA," said Jim Schoeneck, President and Chief Executive Officer of Depomed. "As we enter 2013, we are focused on growing our product revenues and royalties to become a sustainably profitable specialty pharmaceutical company."

Depomed Fourth Quarter and Full Year 2012 Results

Total revenues for the fourth quarter of 2012 were $26.6 million, consisting of $7.6 million of Gralise product sales, $4.9 million of Zipsor product sales, $13.3 million of royalties and $0.8 million of license and other revenue. Fourth quarter 2012 revenues more than doubled total revenues for the fourth quarter of 2011 of $12.1 million. The increase in revenues in the fourth quarter of 2012 was driven by product sales of Gralise and Zipsor and increased Glumetza royalties.

Gralise product sales in the fourth quarter of 2012 included a one-time increase of $1.6 million related to the recognition of previously deferred revenue resulting from a change in revenue recognition to a sell-in model. Prior to the fourth quarter of 2012, the Company was unable to reasonably estimate product returns of Gralise at the time of shipment and deferred recognition of revenue until the product was dispensed to the end user through estimated patient prescriptions. The Company has determined it had the information needed during the fourth quarter of 2012 to reasonably estimate returns. Beginning in the fourth quarter of 2012, the Company began recognizing revenue on shipments of Gralise when title transfers to the customer, providing for estimates on future product returns.

Total revenues for the year ended December 31, 2012 were $90.8 million, consisting primarily of $17.3 million of Gralise product sales, $9.8 million of Zipsor product sales, $44.5 million of royalties and $18.8 million of license and other revenue. Total revenues for the year ended December 31, 2011 were $133.0 million. The decrease in revenues for the year ended December 31, 2012 was primarily due to the recognition of a $48 million milestone payment from Abbott in 2011 related to FDA approval of Gralise and our restructured Glumetza agreement with Santarus.

Selling general and administrative expense was $24.0million for the fourth quarter of 2012 as compared to $21.5 million for fourth quarter of 2011. The increase is primarily due to sales and marketing expenses associated with Zipsor which was acquired in June 2012, and the addition of the part-time contract sales force of 78 sales representatives in June 2012 to support our existing sales efforts.

Selling general and administrative expense was $97.6million for the year ended December 31, 2012 as compared to $81.5 million for the year ended December 31, 2011. The increase in 2012 was primarily due to a full year of expense related to our commercial infrastructure, as we began selling Gralise in October 2011. This was partially offset by the removal of promotion fees resulting from the restructuring of the Glumetza agreement with Santarus in August 2011.

Research and development expense was $3.2 million for the fourth quarter of 2012 as compared to $2.8 million for the fourth quarter of 2011. Research and development expense was $15.5 million for the year ended December 31, 2012 as compared to $15.2 million for the year ended December 31, 2011.

Net loss for the fourth of quarter of 2012 was ($3.7) million, or ($0.07) per share, compared to net loss of ($13.8) million, or ($0.25) per share for the fourth quarter of 2011. Net loss for the year ended December 31, 2012 was ($29.8) million, or ($0.53) per share, compared to net income of $70.7 million, or $1.26 per share for the year ended December 31, 2011. Net income for 2011 included the $48 million milestone from Abbott and a $40 million gain on termination of our agreement with Abbott.

CIO, CTO & Developer Resources

Cash and marketable securities were $77.9 million as of December 31, 2012 as compared to $139.8 million as of December 31, 2011.

2013 Financial Outlook

Depomed is introducing its financial outlook for the full year of 2013. Because of the uncertainty surrounding the outcomes of the Serada FDA advisory committee on March 4, 2013 and the FDA review with a PDUFA date of May 31, 2013, the following financial guidance currently excludes any additional investment in Serada after the date of the FDA advisory committee meeting.

Total revenues of approximately $125 to $135 million, which includes approximately $6 million in anticipated milestones under our collaborative arrangements

Operating expenses of approximately $120 to $130 million, which includes approximately $4 million of intangible amortization related to the acquisition of Zipsor

Year-end 2013 cash and marketable securities of $70 to $80 million

Conference CallDepomed will host a conference call today, Wednesday, February 20, beginning at 4:30 p.m. EST (1:30 p.m. PST) to discuss its results. Participants can access the call by dialing 877-317-6789 (United States) or 412-317-6789 (international). The conference call will also be available via a live webcast on the investor relations section of Depomed's website at http://www.depomed.com. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website for three months.

About DepomedDepomed, Inc. is a specialty pharmaceutical company with three approved and marketed products. Gralise® (gabapentin) is a once-daily treatment approved for the management of postherpetic neuralgia (PHN). Zipsor® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults. Glumetza® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and is commercialized by Santarus, Inc. in the United States. Depomed has also submitted a New Drug Application to the FDA for Serada®, a non-hormonal investigational product for menopausal hot flashes. The company formulates its products and product candidates with its proven, proprietary Acuform® drug delivery technology, which is designed to improve existing oral medications, allowing for extended release of medications to the upper gastrointestinal tract when dosed with food. Additional information about Depomed may be found on its website, www.depomed.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, those related to the commercial launch of Gralise, our ability to sell Zipsor and regulatory filings for Serada; the efforts of our collaboration partners to commercialize products; and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2012. The inclusion of forward-looking statements should not be regarded as a representation that any of the company's plans or objectives will be achieved. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...

René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions.
René is a member of the Society of Women Engineers (SWE) and a m...

With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...

"Avere Systems deals with data performance optimization in the cloud or on-premise. Even to this day many organizations struggle with what we call the problem of data gravity - 'Where should I put the data?' - because the data dictates ultimately where the jobs are going to run," explained Scott Jeschonek, Director Cloud Solutions at Avere Systems, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.

If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...

Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...

DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.

Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by sharing information within the building and with outside city infrastructure via real time shared cloud capabilities.

René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions.
René is a member of the Society of Women Engineers (SWE) and a member of the Society of Information Management (SIM) Atlanta Chapter. She received a Business and Economics degree with a minor in Computer Science from St. Andrews Presbyterian University (Laurinburg, North Carolina). She resides in metro-Atlanta (Georgia).

Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through ...

The next BriefingsDirect hybrid IT management success story examines how the nonprofit research institute HudsonAlpha improves how it harnesses and leverages a spectrum of IT deployment environments. We’ll now learn how HudsonAlpha has been testing a new Hewlett Packard Enterprise (HPE) solution, OneSphere, to gain a common and simplified management interface to rule them all. Here to help explore...

JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa...

With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
In this blog post, we provide 7 tips on how, as part of our wor...

René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterpris...

Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We wil...

Behera Rasananda is a technologist, a leader, a key note speaker has more than 20 years experience in across Government, Financial, Heath Care and Insurance Verticals. Mr. Behera has vast experience in Enterprise Cloud and Big Data solutions and Enterprise Architecture. Currently he works closely for Government Solutions on Enterprise Cloud for Federal Government Agency. Scientist Behera managed a...

As Enterprise business moves from Monoliths to Microservices, adoption and successful implementations of Microservices become more evident. The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Documenting hurdles and problems for the use of Microservices will help consultants, architects and specialists to avoid repeating the same mistakes ...

"Avere Systems deals with data performance optimization in the cloud or on-premise. Even to this day many organizations struggle with what we call the problem of data gravity - 'Where should I put the data?' - because the data dictates ultimately where the jobs are going to run," explained Scott Jeschonek, Director Cloud Solutions at Avere Systems, in this SYS-CON.tv interview at 21st Cloud Expo, ...

If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways...

DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.